diff --git a/.gitignore b/.gitignore
index 927da94..39c8981 100644
--- a/.gitignore
+++ b/.gitignore
@@ -2,3 +2,8 @@ __pycache__/
 venv/
 
 *.wav
+
+# Build artifacts
+build/
+dist/
+*.egg-info/
diff --git a/README.md b/README.md
index fe6b114..91f31a7 100644
--- a/README.md
+++ b/README.md
@@ -10,6 +10,9 @@ Model weights: https://huggingface.co/stabilityai/stable-codec-speech-16k
 
 ## Changelog
 
+### [v0.1.3] TBD
+- __Fix__ restricted Python version to <3.12 due to dependency incompatibilities
+- __Fix__ clarified installation instructions regarding Python version requirements
 ### [v0.1.2] 14-01-25
 - __New__ added hooks for `stable-codec-speech-16k-base`. 
 - __Fix__ fixed major issue with precision in FSQ token calculation, which was degrading results. Fix is currently local, will be upstreamed to `stable-audio-tools` later.
@@ -34,6 +37,12 @@ In addition to the training described in the paper, the weights for `stable-code
 
 The model itself is defined in [stable-audio-tools](https://github.com/Stability-AI/stable-audio-tools) package.
 
+### Python Version Compatibility
+
+**Important:** This package currently requires **Python 3.9, 3.10, or 3.11**. Python 3.12 and later are not supported due to incompatibilities in the `stable-audio-tools` dependency chain (specifically `PyWavelets==1.4.1` and `pandas==2.0.2`).
+
+If you attempt to install on Python 3.12+, you will encounter build errors. Please use Python 3.11 or earlier.
+
 To install `stable-codec`:
 
 ```bash
diff --git a/setup.py b/setup.py
index cdbab2b..38d311a 100644
--- a/setup.py
+++ b/setup.py
@@ -2,7 +2,7 @@
 
 setup(
     name='stable-codec',
-    version='0.1.2',
+    version='0.1.3',
     author='Stability AI',
     author_email='julian.parker@stability.ai',
     description='Stable Codec: A series of codec models for speech and audio',
@@ -10,7 +10,7 @@
     long_description_content_type='text/markdown',
     url='https://github.com/Stability-AI/stable-codec/',
     packages=find_packages(),
-    python_requires='>=3.9',
+    python_requires='>=3.9,<3.12',
     install_requires=['packaging',
                       'wheel',
                       'torch==2.4',